Florida Community Association Manager Practice Exam

Which insurance policy specifically covers a member in a Homeowners Association (HOA)?

1. HO-4

2. HO-6

3. HO-3

4. HO-5

The correct answer is: HO-3

The Homeowners Association (HOA) insurance policy that specifically covers a member is the HO-6 policy. This type of insurance is tailored for condominium owners as it provides coverage for personal property, and covers improvements made to the unit, such as renovations or upgrades that are not typically covered by the master policy held by the HOA. The HO-6 policy is often referred to as a condo insurance policy, and it includes personal liability coverage, as well as coverage for loss of use and loss assessment. The latter is significant in the context of an HOA environment, as it provides protection for members against assessments levied by the HOA due to certain losses that exceed the limits of the master policy. Understanding the distinctions among the various homeowners insurance policies is important; the HO-4, for instance, is intended for renters and does not provide the same coverage as the HO-6 for someone who owns a unit within an HOA. The HO-3 is a more comprehensive coverage for single-family homeowners, while the HO-5 provides a broader range of coverage for owners of single-family homes but is still not designed for condo ownership. Hence, the specificity of the HO-6 to meet the needs of condo owners within an HOA framework positions it as the correct choice